Twitter
TWTR
recently announced that it has been working on an ‘Edit’ button feature, which the users have been requested over the years.
The feature, when available, will allow users to edit tweets posted by them. While further details about the feature are unclear, it is being anticipated that the social media platform will be keeping a track record of the original tweets, even after the tweet has been edited.
Per a
9to5Mac
article, even with the introduction of the Edit button, the tweets will most likely remain unchanged. Per an app researcher
Jane Manchun Wong
, Twitter will create a whole new tweet using a different ID instead of editing the original tweets.
The company plans to make the feature available to only Twitter Blue subscribers when released.
Over the years, Twitter has been stubborn about introducing an Edit button. Previously in 2016, Twitter CEO Jack Dorsey had mentioned that Twitter might never get an Edit feature. He had raised concerns that users might misuse the Edit feature to alter tweets after a tweet has been widely shared.
However, with Elon Musk on board and the new CEO, Parag Agarwal, Twitter plans to bring on some significant changes. Markedly, on Apr 4, Twitter confirmed that Elon Musk bought a 9.2% stake in the company, making him the largest shareholder.
The recent announcement is expected to boost user engagement and performance of Twitter’s shares. The stock has returned 12.1% against the
Internet – Software
industry’s plunge of 34.3% and the
Computer and Technology
sector’s return of 17.9% in the year to date period.
Platform’s Relevance Amongst Users Drive Prospects
In 2022, eMarketer predicts that Twitter users will witness growth of at least 2% and then a downward trend, reaching 1.8% growth and 1.6% growth in 2023 and 2024, respectively.
The company has been witnessing an upswing in advertiser sentiment toward digital ads. Also, improvement in the ad environment is a positive.
In the last reported quarter, advertising revenues increased 22% year over year to $1.41 billion. U.S. advertising revenues totaled $784.7 million, up 21% year over year. International ad revenues increased 24% year over year to $628.3 million.
Total ad engagements declined 12% due to a mix shift toward lower funnel ad formats and 15-second video views, which have a higher cost per engagement (“CPE”) but lower engagement rates. CPE increased 39%, primarily driven by like-for-like price increases across most ad formats.
The company has constantly worked on developing and providing users with more relevant and useful features over the years.
Product improvement, including continued increases in relevance across notifications, search, Explore, and the Home timeline, is a key catalyst. Increased character limits are helping users express more in a tweet. Moreover, users can now directly broadcast live video on its app through just a tweet. Additionally, Twitter has revamped the app, including the latest timeline switch, to improve user experience.
Like other major tech companies, Twitter has already undertaken measures to enter the fast-growing NFT space.
Last year, the company added the functionality to send and receive Bitcoin. Twitter’s journey in cryptocurrencies and NFTs started when Twitter boss Jack Dorsey sold his first tweet as an NFT for more than $2.9 million.
Earlier this year, Twitter launched a tool utilizing which users can showcase non-fungible tokens (NFTs) as their profile pictures. The feature is currently available on iOS to users subscribed with the blue subscription service of Twitter. This initiative to introduce NFTs on the social media platform will help Twitter win market share in the crypto and NFT market space.
Zacks Rank and Stocks to Consider
Twitter currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Zacks Computer and Technology sector are
Apple
AAPL
,
Analog Devices
ADI
and
Bilibili
BILI
, each sporting a Zacks Rank #2 (Buy) at present. You can see
the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here
.
Shares of Apple have declined 6.9% compared with the Zacks
Computer – Mini computers
industry’s decrease of 6.3% and the Computer and Technology sector’s fall of 17.9% in the year-to-date period.
Analog Devices’ shares have declined 8.3% compared with the Zacks
Semiconductor – Analog and Mixed
industry’s fall of 20.2% and the Computer and Technology sector’s drop of 17.8% in the year-to-date period.
The Bilibili stock has declined 49.6% against the Zacks
Internet – Services
industry’s decline of 14.2% and the Computer and Technology sector’s fall of 17.8% in the year-to-date period.
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